Single Touch Payroll:
What you need to know as an employer
The ATO is changing the way employers are required to report certain payments in order to streamline reporting obligations by using real-time reporting aligned to the payroll process.
Single Touch Payroll (STP) is the direct reporting of salary and wages, PAYG withholding and superannuation contribution information to the ATO.
STP legislation will take effect from 1 July 2018 and will be mandatory for businesses with a headcount of 20 or more employees as at 1 April 2018. Those with a headcount of less than 20 will be included from 1 July 2019 subject to legislation being passed in parliament.
The headcount for '20 employees' includes full-time, part-time, casuals (who worked anytime during March 2018), employees based overseas or on paid or unpaid leave. Directors and independent contractors are excluded. For businesses that are part of a wholly owned group, the total number of employees across the group is to be used. You do not need to report this headcount to the ATO, just keep for your records.
Are you STP ready?
In order to prepare for Single Touch Payroll you need to ensure that your payroll software is STP compliant. Many software providers already have a STP solution in place or are in the process of implementing one in time for 1 July. It is important that you check with your payroll software provider as to their status regarding this or ask your Advisor to do so.
We will continue to communicate with clients regarding STP as 1 July draws closer however, in the meantime if you have any questions or concerns regarding Single Touch Payroll please contact your O'Brien Advisor to ensure your payroll software is compliant and that you understand your obligations.
In addition, you may find these links helpful: